90-day loan delinquency remains at historically low levels

In a challenging economic environment marked by high interest rates, inflation, and the high cost of living, loan delinquency rates for 90-day overdue mortgages and auto loans have remained at historically low levels, according to information shared by specialists consulted by EL VOCERO.

According to the most recent data from the Office of the Commissioner of Financial Institutions (OCIF), as of June 2025, 90-day delinquency rates were at 2% for mortgages.

The president of the Mortgage Bankers Association (MBA), Puerto Rico chapter, Carlos del Valle, reported that delinquency rates have remained at “very low” levels over the past three years.

He added that, in his experience as Sales Director at Oriental Bank, he has also observed a decrease in the number of foreclosed homes. As an example, he mentioned cases in their loan portfolios where they have millions in loans and only 20 homes in some stage of the delinquency process.

“Delinquency has remained at historically low levels, below 4% to 5%. We still don’t see it as a situation that causes concern,” del Valle commented.

The president of the Puerto Rico Bankers Association, Zoimé Álvarez, agrees, mentioning that with even more recent data from September 2025, presented on the Federal Deposit Insurance Corporation (FDIC) website, the 90-day delinquency rate was 3.69% in the mortgage segment.

“They are historically low. Since the sudden shock we experienced in 2020, which was when the pandemic hit, it has remained practically flat. It has stayed at what is historically expected low levels,” Álvarez stated.

The executive explained that these are historically low numbers because, in January 2015, long before Hurricane Maria struck in 2017, the 90-day delinquency rate was 6%. After the hurricane, it reached 19%. Meanwhile, by July 2020, at the height of the pandemic, the delinquency rate was reported at 16%. However, by June 2023, the delinquency rate had dropped to 4%.

“Taking into account FDIC data, delinquency rates in the second half of the year decreased compared to the third quarter. Any increase of 1% or 1.5% is negligible. That’s not an indication of anything sustained. For us to talk about an increase in crime and delinquency, we have to be talking about sustained changes, changes that are unexpected by the market itself,” Álvarez stated.

When asked if the same historical trend is observed in the auto loan sector, Álvarez indicated that, according to FDIC data, as of September 2025, the 90-day delinquency rate was 2.08%, compared to 2.04% in June 2025.

In the executive’s opinion, delinquency rates are stable in both the mortgage and auto loan sectors.

“I would venture to say that in the residential sector they are at historically low levels,” Álvarez stated.

Homes above all else

Regarding the reasons for the continued low mortgage rates, del Valle mentioned that people prefer to pay off their homes first and postpone other expenses, as well as the housing shortage. Also, those who rent out their homes can cover their rent with that income.

“The economy is still showing signs of stability in that regard, although it’s uncertain how it will perform this year. With mortgages, people prefer to hold onto their property because it’s a priority for Puerto Ricans, who exhaust all available resources before entering into a legal process,” del Valle added.